Get Our FREE Newsletter

Sign Up

Auto retailer Lithia Motors profit boosted by strong demand, higher prices

Spread the love

Low interest rates and consumers’ preference for personal vehicles have lifted demand for auto retailers at a time when supplies have been plagued by an unrelenting semiconductor crunch. This has pushed customers to pay higher prices and boosted profits for manufacturers and retailers.

The average price of a new vehicle set a first-half record of $38,041, an increase of 10% from 2020, according to consultant J.D. Power.

Average gross profit per new vehicle for Lithia jumped 58% to $4,173, while it rose 47% to $3,311 for used vehicles.

The company’s net income for the second quarter ended June 30 was $304.9 million, or $10.75 per share, compared with $77.7 million, or $3.38 per share, a year earlier.

Its revenue jumped to $6.01 billion from $2.76 billion.

This post was originally published on this site